Asia's Best Minds

Goldman Is Bullish On Shenzhen Trading Link

Goldman Sachs says the Shenzhen-Hong Kong Stock Connect is an important step for China’s markets.

Next week’s launch of a trading link between the Shenzhen and Hong Kong stock exchanges marks another big step in China’s path to open up its financial markets. The addition of Shenzhen to an existing Shanghai-Hong Kong link gives international investors close to full direct access to the domestic stock market, including exposure to fast-growing sectors that benefit from China’s economic transition.

The Shenzhen extension of Stock Connect more than doubles the number of mainland Chinese stocks that global investors can buy...